576482(76) :TRAVEL & TOURISM (New)

COURSE CONTENTS
UNIT - 1 Tourism Concept & perspective: Tourism - Meaning and Definition, Changing facets
of Tourism, Different perspectives on the study of Tourism Importance of Managerial
and Economic Perspective, Definitions: Visitor, Tourist Excursionist, Incoming
Tourist ,Outgoing Tourist

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Tourism concepts and principles
Travel
Travel comprises all journeys from one place to another. It includes all journeys made by people who enter a country for
leisure, to work, reside, study or who just pass through a country without stopping.
Tourism
(a) Tourism means the temporary short-term movement of people to destinations outside the places where they normally
live and work, as well as their activities during their stay at these destinations. (All tourism should have some travel,
but not all travel is tourism.)

(b) Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for less
than a year and whose main purpose of travel is other than the exercise of an activity remunerated from within the
place visited. The term "usual environment" is intended to exclude trips within the area of usual residence and frequent
and regular trips between the domicile and the workplace and other community trips of a routine character.
Purposes of visit:
 Business
 Leisure / holiday
 Study
 Sports
 Cultural
 Religion
 Health
 Others

Definitions of "Traveler", "Tourist"

Travellers - Any person who is taking a trip within or outside his/her own country of residence irrespective of the purpose of
travel, means of transport used, even though he/she may be travelling on foot.

Tourist - A tourist is a person who travels to destinations outside his/her residence and working place, and stays for at least
24 hours, for the purpose of leisure or business.

Same-day visitor or Excursionist - An excursionist is a person who temporarily visits a destination and stays for less than
24 hours, for the purpose of leisure or business, but not for transit.

Examples:
1. A Canadian resident takes a short trip to the USA without staying overnight.
2. A Malaysian resident takes a short trip to Singapore without staying overnight.
World Tourism Organization's (UNWTO) Definitions of "Tourist"

The International Conference on Travel and Tourism Statistics convened by the World Tourism Organization (UNWTO) in Ottawa,
Canada in 1991 reviewed, updated, and expanded on the work of earlier international groups. The Ottawa Conference made some

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 fundamental recommendations on definitions of tourism, travellers, and tourists. The United Nations Statistical Commission adopted
UNWTO's recommendations on tourism statistics on March 1993.

a) Tourists: Visitors who spend at least one night in the country visited

b) Crew members: Foreign air or ship crews docked or in lay over and who used the accommodation establishments of the country
visited

c) Excursionists: Visitors who do not spend at least one night in the country visited although they might visit the country during one
day or more and return to their ship or train to sleep.

d) Cruise passengers: Normally included in excursionists. Separate classification of these visitors is nevertheless preferable.

e) Day visitors: Visitors who come and leave the same day.

f) Crews: Crews who are not residents of the country visited and who stay in the country for the day.

g) Members of armed forces: When they travel from their country of origin to the duty station and vice versa.

h) Transit passengers: Who do not leave the transit area of the airport or the port in certain countries, transit may involve a
stay of one day or more. In this case they should be included in the visitor statistics.

In India we see the origin of the concept of Tourism in Sanskrit Literature. It has given us three terms derived from
the root word “Atana” which means going out and accordingly we have the terms:

I. Tirthatana – It means going out and visiting places of religious merit.

II. Paryatana - It means going out for pleasure and knowledge.
III. Deshatana - It means going out of the country primarily for economic gains.

In simple terms Tourism is the act of travel for the purposes of leisure, pleasure or business, and the provision of services
for this act. There are two important components that make up tourism:

1. The practice of travelling for pleasure.

2. The business of providing tours and services for persons travelling.

Here we are discussing the features of the=-‗above two components

The following are required, to make travel possible: (Component 1)

I. Discretionary income, i.e. money to spend on non-essentials
II. Time in which to do so.
III. Infrastructure in the form of accommodation facilities and means of transport.

Individually, sufficient health is also a condition, and of course the inclination to travel. Furthermore, in some countries there
are legal restrictions on travelling, especially abroad. Communist states restrict foreign travel only to "trustworthy"
citizens. The United States prohibits its citizens from travelling to some countries, for example, Cuba.

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 There are four basic services to be provided for Tourists: (Component 2)
I. Travel Arrangements
II. Board and Lodging
III. Food
IV. Entertainment

In the above paragraphs we have discussed the basic meaning of tourism and the features of the components of Tourism. Now we will
talk about the definitions of the term tourism. There have been a number of attempts to define tourism since the beginning of the
twentieth century.

Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more
than one consecutive year for leisure, business and other purposes.
 The term ―usual environment‖ is intended to exclude trips within the place of residence, trip to the usual place of
work or education and daily shopping and other local day-to-day activities
 The threshold of twelve months is intended to exclude long-term migration.
 For the distance travelled there is no consensus. It varies from at least 40 kms to at least 160kms away from home
one way for any purpose other than commuting to work.

Five main characteristics of tourism may be identified from the definition

I. Tourism arises from a movement of people to, and their stay in, various destinations.
II. There are two elements in all tourism: the journey to the destination and the stay including activities at the
destination.
III. The journey and the stay take place outside the usual place of residence and work, so that tourism gives rise to
activities, which are distinct from those of the resident and the working population of the places, through which the
tourist travels and in which they stay.
IV. The movement to destinations is of temporary, short-term character, with the intention of returning to the usual
environment within a few days, weeks or months.
V. Destinations are visited for purposes other than taking up permanent residence or employment remunerated from
within the places visited.

As per WTO definition, Tourism can be classified into the following forms

I. Inbound tourism: Visits to a country by non-resident of that country - for example, when A American citizen, Mr.
Sam comes to India to see the Taj Mahal, he is an inbound tourist for India.
II. Outbound tourism: Visits by the residents of a country to another country - ,for example when an Indian citizen,
Mr. Ram goes to America to see Hollywood , he is an outbound tourist for India.
III. Domestic tourism: It involves travelling by the residents of the given country within their own country -, for
example, when Mr. Anil a resident of Delhi goes to see the Taj Mahal in Agra he is a domestic Indian Tourist.
IV. Internal tourism: It comprises of domestic tourism and inbound tourism.
V. International tourism: It comprises of inbound tourism and outbound tourism

CHANGING FACETS OF TOURISM:

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From the very inception of life, travel has fascinated man. Travel and tourism have been important social activities of human
beings from time immemorial. The urge to explore new places within one’s own country or outside and seek a change of
environment & experience has been experienced from ancient times.

Tourism is one of the world‘s most rapidly growing industries. Much of its growth is due to higher disposable incomes,
increased leisure time and falling costs of travel. As airports become more enjoyable places to pass through, as travel
agency services become increasingly automated, and as tourists find it easier to get information on places they want to visit,
tourism grows.

The Internet has fuelled the growth of the travel industry by providing on line booking facilities. It has also provided people
with the power to explore destinations and cultures from their home personal computers and make informed choices before
finalizing travel plans. With its immense information resources, the Internet allows tourists to scrutinize hotels, check
weather forecasts, read up on local food and even talk to other tourists around the world about their travel experiences for a
chosen destination.

This new trend has made the tourism job very challenging. The holiday makers want a good rate of return on their
investment. They are to be lured with value additions and improved customer service. This also put emphasis on the regular
flow of manpower with specific skills at the appropriate levels to match and cater to global standards. The success of the
hospitality industry comes from provision of quality rooms, food, service and ambience. There is no doubt that fitness has
increasingly become a larger part of everyone‘s life. And business and leisure travelers alike look to maintain their fitness
goals while away from home. Awareness should be created about the environment and education. A collective effort and
co-operation with powerful networking are the need of the hour. People should be acting as the watchdogs of the society as
far as environmental issues are concerned.

Eco-tourists are a growing community and tourism promotions have to adopt such eco-practices which could fit this growing
community. Another growing trend in the tourism scene is the Incentive Market and the scope of the destination to attract
conferences and convention traffic. Here the prospects are better for those destinations where state of the art infrastructure
has been developed along with a safe and clean image.

Tourism today is much more than just developing products. It is more about quality, insightful thinking and ability to have
global information about technology, partners, contacts and responding quickly to global and regional trends. The
fundamental task before tourism promotion is to facilitate integration of the various components in the tourism trade as
active participants in the nation‘s social and cultural life. There is a long road ahead. All must work towards a society where
people can work and participate as equal partners. Tourism should be a vehicle for international cooperation and
understanding of the various civilizations and a harbinger of peace. From the foregoing we can see how fast the face of
tourism is changing and how challenging the job of travel agencies is now.

There is therefore a need for proper training of the personnel working in the industry through thorough and a detailed study
of the subject A unified approach to the subject is also needed since at present people from different fields have been
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studying tourism from different perspectives

DIFFERENT PERSPECTIVES ON THE STUDY OF TOURISM:

1. Geographical Perspective - from a geographer‘s perspective the main concern of tourism is to look into aspects like the
geographical location of a place, the climate, the landscape, the environment, the physical planning and the changes in
these emerging from provisioning of tourism facilities and amenities. A geographer feels that it is the climate, landscape or
physical attributes which draw the tourist to a destination, for example; if a person from Delhi goes to Shimla in the summer
he does so because of the cooler climate which he cannot get in Delhi

2. Sociological Perspective - From a sociologist‘s perspective Tourism is a social activity; it is about interaction between
different communities—hosts and guests—and encounter between different cultures. This approach studies social classes,
habits and customs of both hosts and guests in terms of tourism behaviour of individuals or groups of people and the impact
of tourism on society.

3. Historical Perspective - from an historian‘s perspective tourism is a study of the factors instrumental in the initiation of
tourism to a particular destination, the order of happenings leading to tourism development, the reasons for happening of
the occurrences in that order, beneficiaries of the tourist activity and an untimely and premature identification of negative
effects. For example we all know that a lot of tourists visit Taj Mahal in Agra but a historian
would be interested in studying the factors that bring the tourist there, e.g. the architecture, the story behind the monument,
or something else that draws them there.

4. Managerial Perspective - from the management perspective tourism is an industry, and therefore needs managerial skills
in order to be properly managed. As the industry grows we see continuous changes in various organisations and services
linked with the industry, the tourism products and so on so this approach concentrates on management activities such as
planning, research, pricing, marketing, control etc. as vital to the operation of a tourist establishment.

5. Economic Perspective – From an economist‘s perspective tourism is a major source of foreign exchange earnings, a
generator of personal and corporate incomes, a creator of employment and a contributor to government earnings. It is a
dominant global activity surpassing even trade in oil and manufactured goods. Economists study the effects of tourism
industry on the economy. This is a two way process.

THE IMPORTANCE OF MANAGERIAL AND ECONOMIC PERSPECTIVES TO THE STUDY OF TOURISM:

Now due to higher disposable incomes, increased leisure time and falling cost of travel, the Tourism industry has shown a
very high growth and since tourism is a service industry it comprises of a number of tangible and intangible components.
The tangible elements include transport systems - air, rail, road, water and now, space; hospitality services -
accommodation, food and beverage, tours, souvenirs; and related services such as banking, insurance and safety and
security. The intangible elements include: rest and relaxation, culture, escape, adventure, new and different experiences.

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As there are number of bodies involved the need arises for a management of services related to this industry and so the
study of Tourism acquires a great practical necessity and usefulness. Tourism industry is very fast growing and this industry
involves activities and interests of Transport Undertakings, Owners of Tourist Sites and Attractions, Various tourist Service
Providers at the tourist destinations and Central and Local Government, etc. Each of these serves both the resident
population and the tourists and their management must reconcile the needs of tourists with the needs of the resident
population. So it becomes important to study tourism from the perspective of Management, since the management of
various bodies in this industry is invaded.

Economic Impacts of Tourism

Businesses and public organizations are increasingly interested in the economic impacts of tourism at national, state, and
local levels. One regularly hears claims that tourism supports X jobs in an area or that a festival or special event generated
Y million dollars in sales or income in a community. ―Multiplier effects‖ are often cited to capture secondary effects of
tourism spending and show the wide range of sectors in a community that may benefit from tourism.

Tourism activity also involves economic costs, including the direct costs incurred by tourism businesses,
government costs for infrastructure to better serve tourists, as well as congestion and related costs borne by individuals in
the community. Community decisions over tourism often involve debates between industry proponents touting tourism‘s
economic impacts (benefits) and detractors emphasizing tourism‘s costs. Sound decisions rest on a balanced and objective
assessment of both benefits and costs and an understanding of who benefits from tourism and who pays for it. Tourism‘s
economic impacts are therefore an important consideration in state, regional and community planning and economic
development. Economic impacts are also important factors in marketing and management decisions. Communities therefore
need to understand the relative importance of tourism to their region, including tourism‘s contribution to economic activity in
the area
A variety of methods, ranging from pure guesswork to complex mathematical models, are used to estimate
tourism‘s economic impacts. Studies vary extensively in quality and accuracy, as well as which aspects of tourism are
included. Technical reports often are filled with economic terms and methods that non-economists do not understand.

TYPES OF ECONOMIC ANALYSIS

Economic impact analysis -- What is the contribution of tourism activity to the economy of the region? An
economic impact analysis traces the flows of spending associated with tourism activity in a region to identify
changes in sales, tax revenues, income, and jobs due to tourism activity. The principal methods here are visitor
spending surveys, analysis of secondary data from government economic statistics, economic base models, input-
output models and multipliers. (Frechtling 1994a)
Fiscal impact analysis – Will government revenues from tourism activity from taxes, direct fees, and other sources
cover the added costs for infrastructure and government services? Fiscal impact analysis identifies changes in
demands for government utilities and services resulting from some action and estimates the revenues and costs to
local government to provide these services (Burchell and Listokin1978).
Financial analysis – Can we make a profit from this activity? A financial analysis determines whether a business
will generate sufficient revenues to cover its costs and make a reasonable profit. It generally includes a short-term
analysis of the availability and costs of start-up capital as well as a longer-range analysis of debt service, operating
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 costs and revenues. A financial analysis for a private business is analogous to a fiscal impact analysis for a local
government unit.
Demand analysis – How will the number or types of tourists to the area change due to changes in prices,
promotion, competition, quality and quantity of facilities, or other demand shifters? A demand analysis estimates or
predicts the number and/or types of visitors to an area via a use estimation, forecasting or demand model. The
number of visitors or sales is generally predicted based on judgement (Delphi method), historic trends (time series
methods), or using a model that captures how visits or spending varies with key demand determinants (structural
models) such as population size, distance to markets, income levels, and measures of quality & competition (Walsh
1986, Johnson and Thomas 1992).
Benefit Cost analysis (B/C) – Which alternative policy will generate the highest net benefit to society over time? A
B/C analysis estimates the relative economic efficiency of alternative policies by comparing benefits and costs over
time. B/C analysis identifies the most efficient policies from the perspective of societal welfare, generally including
both monetary and non-monetary values. B/C analysis makes use of a wide range of methods for estimating values
of non-market goods and services, such as the travel cost method and contingent valuation method.

The current state of the Travel & Tourism industry

Travel & Tourism, one of the world‘s largest industries, outperformed the global economy in 2012 and grew faster
than many other notable industries such as manufacturing, financial services, communications and retail. According to the
World Travel & Tourism Council‘s (WTTC) economic research, in 2012, Travel & Tourism grew its total contribution to GDP
by 3% to US$6.6 trillion in GDP (a rise of US$500 billion year-on-year) and increased its number of jobs by five million to
260 million. For the first time, one in every 11 jobs in the world is now supported by Travel & Tourism.
WTTC is predicting the Travel & Tourism industry will expand its total contribution to GDP by 3.2% in 2013, faster
than the 2.4% predicted for global economic growth. The industry is expected to support nearly 266 million jobs this year
and again outperform many other industries.
The importance of Travel & Tourism as a tool for economic development and job creation is clear. However, this
growth will not happen magically - and less restrictive visa regimes and a reduction in punitive taxation policies would help
the industry contribute even more to broader economic development and would meet the clear and rising demand for
international travel. Whilst it‘s recognised that countries have genuine concerns about safety and border sovereignty, there
are many ways in which governments can support more efficient travel without compromising national security.
In May 2012, WTTC and the World Tourism Organization (UNWTO) engaged in a study on the impact of visa
facilitation on job creation across the G20 countries, which provided the data needed to press the arguments for action.
The findings showed that of the 656 million international tourists who visited G20 countries in 2011, 110 million needed a
visa, while millions more were deterred from traveling by the cost, waiting time and difficulty of obtaining a visa. The joint
research highlighted that the facilitation of tourist visas to G20 countries from some of their fastest growing source markets
could generate an additional US$ 270 billion in international tourism receipts and create more than five million additional
jobs in the G20 economies by 2015. It also showed that visa facilitation has historically increased international tourist
arrivals of affected markets by 5-25% following the implementation of policy changes.
All countries need to realise that the potential for developing their economies through Travel & Tourism can take
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place alongside their needs for border security. Concerted action from countries like India, China, the UK, US and Russia
would start a domino effect of removing these constraints worldwide. Facilitating visas for tourists, particularly from some of
the world‘s fastest growing source markets such as the BRICs, could stimulate demand, spending and ultimately create
millions of new jobs in the G20 economies.
WTTC campaigns for Governments to implement policies, which support the growth of Travel & Tourism through
the creation of a competitive business environment. Despite challenges to economic growth, the Travel & Tourism industry
is still expected to be one of the world's fastest growing sectors. But it must have clear support from governments, if its full
potential to create jobs, increase exports and stimulate investment is to be realised. In fact, the impetus lies with
Governments to ensure that their policies specifically pave the way for companies to offer services to consumers without
burdensome bureaucracy.
WTTC believes that the most appropriate way to reap the enormous economic and social benefit that Travel &
Tourism brings is to develop sensible policies in the fields of liberalising Air Services Agreements to create open skies
between countries and within regional bloc, repatriation of finance and a reduction in red tape.
Sustainability is also a big issue for the Travel & Tourism industry. Over the past two decades, the industry has
made significant steps towards improving environmental impact and community engagement but these approaches now
need to be incorporated into core business models. To achieve this, the industry has to make itself accountable and
measure and openly report the impacts of its operations. This also requires investment in new research and development.
WTTC - together with the International Tourism Partnership and a working group of industry members – has launched the
Hotel Carbon Measurement Index (HCMI) and a growing number of hotels are now using it to report their carbon emissions
but this industry-led approach needs to spread further. Last but not least, work needs to be done to attract people to work
in the industry to ensure that Travel & Tourism has the necessary talent to make positive contributions to the economy and
society in the future.
The subject of WTTC‘s forthcoming Global Summit in Abu Dhabi (9-10 April) is ―A Time for Leadership‖. The
Summit will explore the implications of our dramatically changing world economy and growing population on the Travel &
Tourism industry. Four months after the world celebrated its one billionth international traveller, it will examine what we
need to do collectively to prepare for the next one billion tourists.
There is no disputing that the Travel & Tourism industry is a vital driver of the world‘s economy. However, everyone
working in the industry needs to play their part in communicating that message. Our messages need to coalesce and we
need to state our case in terms, which make governments and world leaders sit up and listen. We call on all sectors of our
industry to come together to do this with ―One Voice‖.
About WTTC
The World Travel & Tourism Council is the global authority on the economic and social contribution of Travel & Tourism. It
promotes sustainable growth for the industry, working with governments and international institutions to create jobs, to
drive exports and to generate prosperity. For more than 20 years, the World Travel & Tourism Council has been the voice
of this industry globally. Members are the Chairs, Presidents and Chief Executives of the world‘s leading, private sector
Travel & Tourism businesses. These Members bring specialist knowledge to guide government policy and decision-
making, raising awareness of the importance of the industry as an economic generator of prosperity.

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